Growing digital technology company, Pay88, Inc., announced today that it has signed a Letter of Intent to merge with Hongmeida Enterprise Group, a privately owned investment and financial services firm.
Hongmeida Enterprise, located in Western China, mainly engages in raw materials investment and financial services. The company also has a professional pawn business (mortgage finance) license. In 2008, the Hongmeida’s annual income totaled approximately RMB 75,375,318.
Industry insiders believe that the agreement with Hongmeida is a powerful step to revitalize and grow Pay88. In principle, the agreement states that Pay88 can acquire Hongmeida Enterprise Group with common stock in a currently undetermined amount.
Guo Fan, Chairman and President of Pay88, commented, “While we feel Pay88 has been successful with our online gaming platforms due to ours large customer base. This Deal with Hongmeida Enterprise Group will allow us to use our payment platform and existing banking relationships in China to a much wider consumer audience.” He added, “As a result of this new relationship, Qianbao Technology will have the ability to add revenue sources that have the potential to bring a great deal of revenue.”
Pay88 is one of the few Chinese companies capable of facilitating online banking. Pay88 is also the leading reseller of internet game time in China’s booming $2.75 billion online video game market, selling online multiplayer game time and prepaid cards in more than 20 Asian cities.